Subsidy Tracker Individual Entry

Company: 
Foxconn
Subsidy Source: 
state
Location: 
Wisconsin
Project Description: 

flat-screen plant

Year: 
2017
Major Industry of Parent: 
electrical and electronic equipment
Specific Industry of Parent: 
electronic equipment
Subsidy Value: 
$4,792,400,000
Program Name: 
multiple
Awarding Agency: 
multiple
Type of Subsidy: 
MEGADEAL
Number of Jobs or Training Slots: 
13,000
Wage Data: 
$30,000
Wage Data Type: 
minimum annual wage
Capital Investment: 
$10,000,000,000
Source of Data: 

The entry's information came from: Assembly Bill 1, August 2017 Wisconsin Legislature Special Session, online at: https://docs.legis.wisconsin.gov/2017/proposals/au7/asm/bill/ab1; Jon Peacock, Wisconsin Budget Project, "Different Assumptions about Foxconn Job Creation Yield Much Higher Estimates of the Cost of Jobs," August 3, 2017; online at http://www.wisconsinbudgetproject.org/wp-content/uploads/2017/08/Foxconn... Jobs and investment are amounts promised by the company. Local subsidy data comes from Sean Ryan, "Mount Pleasant approves $764M spending plan for Foxconn's plant," Milwaukee Business Journal (Wisconsin), November 21, 2017.

Notes: 

During a special session, Wisconsin State Assembly passed and the governor signed a subsidy package to attract Foxconn to the state. The state approved $2.85 billion over 15 years in refundable corporate tax credits that will offset 17 percent of the company's payroll costs ($1.5 billion) and 15 percent of capital expenditures ($1.35 billion). Wisconsin already had tax breaks that would eliminate Foxconn's state tax obligation (Manufacturing and Agriculture tax credit and Single Sales Factor); thus the subsidy was to be paid in cash. In addition, the state approved $150 million in sales tax exemptions on construction materials. The state also agreed to spend $252.4 million on road improvements for the future facility. Mount Pleasant Village agreed to create a Tax Increment Financing district whose cost has been estimated at $1.49 billion, including $763.8 million in tax increments that will pay for the project, $166.5 million in interest, and other administrative costs. Racine County agreed to provide $50 million towards the land acquisition. In addition, Foxconn was granted workforce development assistance. The company was also exempted from various environmental laws and regulations. Overlap with main Subsidy Tracker data: none.

Source Notes: 
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